Coalition Extends Fuel Excise Cuts Until September 1, Gradual Restoration Planned

Coalition leaders have decided to extend the current excise reductions on petrol and diesel until September 1. Following this date, previous rates will be gradually reinstated over four distinct periods between September and the end of the year. These measures, estimated to cost €270 million, are scheduled for consideration by the Cabinet today.

Government officials assert that the phased restoration of previous rates will prevent a sudden financial burden on families and will continue to mitigate inflation. This decision was reached after a meeting of Coalition leaders yesterday evening. The existing measures have implemented an excise duty cut of 27 cents per litre on petrol and 32 cents per litre on diesel.

Tánaiste Simon Harris is expected to present a memo to the Cabinet today, detailing the gradual reduction of these cuts. The initial excise duty reductions were introduced in April, prompted by demonstrations across the country involving farmers, hauliers, and other agricultural sector representatives protesting against rising fuel prices after the US and Israel attacked Iran. Since the implementation of these cuts, oil prices have returned to levels observed prior to the conflict in Iran.

Aontú leader Peadar Tóibín welcomed the Government's reversal as positive news, attributing it to significant pressure from his party and other groups.